Word of the Day

Commodity

Even if you don't think you do, you already know plenty about commodities. Want us to prove it? No problem.

What makes oil produced in Saudi Arabia different from oil exported from Nigeria? It's the same thing that makes the corn you ate at last summer¿s barbecue different from the corn used to produce ethanol. Stumped? Well, don't feel bad, it's a trick question. The answer? Absolutely nothing. Corn is corn no matter where it comes from -- just as wheat is wheat and natural gas is -- right! -- natural gas. (Though the quality may differ, the make-up is uniform.)

So, in less elaborate terms, corn and oil (and all other commodities) are homogenous goods that can be processed, resold and more often than not, used as an input to the production of other goods or services. These goods are traded on a commodity exchange, thus setting the price-per-barrel (or other metric unit) used to value them.

Now pay attention, here's a question that indeed does have an answer: What is the difference between a commodity and a stock? While a stock can tank and become worthless, a commodity cannot have its value be wiped to zero. One other difference: Most commodities are traded in futures, meaning traders buy and sell where they think the price of a product will be at a certain point in the future. Stocks trade based on the value of the underlying company at that point in time.

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Monday, October 06, 2008

Zacks Analyst Blog Highlights: Eli Lilly and Co., Marriott International, Inc., Arena Pharmaceuticals, Inc., ArvinMeritor, Inc. and Echelon Corp.

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CHICAGO, Oct 06, 2008 (BUSINESS WIRE) ----Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Eli Lilly and Co. (NYSE: LLY), Marriott International, Inc. (NYSE: MAR), Arena Pharmaceuticals, Inc. (Nasdaq: ARNA), ArvinMeritor, Inc. (NYSE: ARM) and Echelon Corp. (Nasdaq: ELON).

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Here are highlights from Friday's Analyst Blog:

Lilly - Aside from ImClone Rumors

Eli Lilly and Company (NYSE: LLY) is a global healthcare company with core products in a number of primary-care pharmaceutical markets. The leading product is Zyprexa, a treatment for schizophrenia and bipolar disorder. The company's other leading drugs include Gemzar (pancreatic cancer), Evista (osteoporosis), Cymbalta (depression), Byetta (type-II diabetes), Cialis (erectile dysfunction), Strattera (ADHD), and Alimta (chemotherapy).

The company is entering a challenging period, brought about by recent pipeline disappointments, most notably uncertainty surrounding antiplatelet drug Prasugrel. Although we believe the underlying fundamentals of the company remain solid, the recent pipeline setbacks and lack of clarity surrounding prasugrel will likely limit the upside to the stock.

Marriott Downgraded to Sell

We are lowering our rating on shares of Marriott International (NYSE: MAR) from Hold to Sell following the release of Q3 financial results.

The operating environment in the lodging sector has weakened substantially in recent quarters. Additionally, the company's timeshare segment is struggling, with sales down and credit market turmoil preventing the company from completing an expected note sale.

Arena Looking Better from Afar

Arena Pharmaceuticals (Nasdaq: ARNA) is a biopharmaceutical company with its primary expertise in the area of G protein-coupled receptors (GPCRs). Several blockbuster GPCR drugs such as Plavix, Claritin, Wellbutrin, and Zyprexa are already on the market in the U.S.

Arena focuses its research and development on four key pharmaceutical areas: Metabolic, Cardiovascular, Central Nervous System, and Inflammatory disorders. The company's leading pipeline candidate, lorcaserin for obesity, continues its phase III program.

ArvinMeritor Shifts to Low Gear

ArvinMeritor, Inc. (NYSE: ARM) headquartered in Troy, Michigan, is a global automotive parts manufacturer and supplier to various customers in North America, Europe, and other parts of the world. The company is a worldwide supplier of a broad range of integrated systems, modules and components for commercial, specialty and light vehicles worldwide, and has developed market positions as a leader in most of its markets.

Presently, the company is planning to spin off its Light Vehicle Systems (LVS) business. The company is undergoing dramatic cost reductions through its profit improvement initiative "Performance Plus." The company is also expanding geographically and outsourcing to low-cost countries. However, a downturn in the automotive industry, along with production cuts, coupled with rising steel and fuel prices, lead us to rate the shares a Hold.

Echelon Initiated with a $10+ Target

Echelon (Nasdaq: ELON) designs, markets and sells system and network infrastructure products such as air conditioners, appliances, electricity meters, light switches, thermostats and valves for the smart grid and the network control markets. The company designs and supports systems and software that allow open and integrated control networks to connect machines and other electronic devices for the purpose of sensing, monitoring and controlling automatic doors, lighting, security systems, rail networks and many more.

The company is currently trading at its 52-week low price. After posting a strong revenue growth in 2007, Echelon provided very disappointing guidance for fiscal 2008, and blamed much of the shortfall on slow ramp of its NES [Network Energy Services] projects and delay in bookings. We believe slow bookings are likely to hamper growth in 2008.

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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE: Zacks.com

 Zacks.com
   Mark Vickery Web Content Editor 312-265-9380 Visit: www.zacks.com

Copyright Business Wire 2008 **********************************************************************
   As of Thursday, 10-02-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a
   DOWNTREND on 09-29-2008 for ARM @ $13.18. As of Thursday, 10-02-2008 23:59, the latest Comtex SmarTrend Alert, an automated
   pattern recognition system, indicated a DOWNTREND on 08-07-2008 for ARNA @ $5.62. As of Thursday, 10-02-2008 23:59, the latest
   Comtex SmarTrend Alert, an automated pattern recognition system, indicated a DOWNTREND on 09-29-2008 for ELON @ $11.85. For
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